China’s dominant stock indexes recouped sharp early losses today
Expects of further policy tightening and a flood of supply from initial plain offerings also added to the gloomy mood in early trading, granting sentiment improved after data showed the economy expanded 6.9 percent in the encourage quarter, slightly faster than expected.
Growth in June industrial generate and retail sales also came in stronger than expected.
China’s blue-chip CSI300 formula rose 0.2 percent to 3,711.16 points by the end of the morning session, while the Shanghai Composite Indication was roughly flat at 3,218.75. Both had been down more than 2 percent in originally trade.
However, the start-up board ChiNext tumbled as much as 5.3 percent to a 2-1/2 year low, up front recouping some losses. The gauge ended the morning down 3.4 percent.
“The competition of story-telling in ChiNext is over,” said Shen Weizheng, a fund director at Ivy Capital.
“You need to buy blue-chips with good earnings.”
President Xi Jinping solemn word of honoured over the weekend to strengthen financial supervision
Chinese investors dropped small-cap routines after President Xi Jinping vowed over the weekend to strengthen economic supervision and expand direct financing, which will potentially increase equity supply.
In contrast to larger, state-owned firms which are being buoyed most by the rough economy, an increasing number of once-high-flying start-ups are floundering – a trend epitomised by Leshi Internet & Info Corp, which unveiled over the weekend it swung to a loss in the outset half.